The total of the inventory account is $2,000,000, consisting of 500 items.

A sample of 100 items is to be selected with a random start of 4.

The tolerable error is set at $100,000.

Required:

(b) Using Dollar Unit Sampling (DUS) with selection by a systematic sampling technique, which inventory items will be the first 3 included in the sample? Show all calculations.

(c) If the total amount for the samples is $1,700,000 and the misstatement found in the samples is $80,000, explain whether the inventory balance is materially misstated. Show all calculations.

(c.ii) What possible courses of action can you take for your results in part (c)?

Thank you for your help!

QUESTION 6 Part A Below are the initial 20 items from the population of inventory items for Saturn Ltd: Population item 1 2 3 4 5 6 7 8 9 10 Amount ($). 1,890 6,250 825 22,110 16,225 1,000 770 5,725 9,130 7,755 Population item 11 12 13 14 15 16 17 18 19 20 Amount ($) 425 11,895 3,270 1,150 975 910 2,465 4,220 735 1,760